Q4 2020 J & J Snack Foods Corp Earnings Call
Ladies and gentlemen, thank you for holding for the JNJ snack foods fourth quarter earnings Conference. Please continue to hold the conference will begin momentarily.
Once again, thank you for holding for the JNJ snack foods fourth quarter earnings Conference call. Please continue to hold the conference will begin momentarily. Thank you for your patience.
[music].
Hello, and welcome to D.J. and J. snack Foods fourth quarter earnings Conference call. My name is Michelle and I will be the operator for today's conference at.
At this time, all participants are needle listen only mode later.
Later, we will conduct a question and answer session injury that question and answer session. If you have a question. Please press Star then one on your Touchtone phone. Please note that this conference is being recorded.
And now I'll turn the call over to Mr., Gerry Shreiber, CEO and founder Mr. Shreiber you may begin.
Thank you Michelle.
Good morning participants.
And welcome to our fourth quarter conference call.
You want to call today, we have Dan fashion or which.
Who is president.
And Jay recently named President in about four months ago.
Yeah.
Okay.
Ken Wong.
Hussein Senior Vice President and CFO.
This more who is remote but he is our senior vice president and our soon to be retirees.
Bob Radano our COO.
Bob Hey.
And your vice President of sales.
And Marjorie Rush called Vice President that's going to help.
I'll now begin with the opening.
The forward looking statements.
Forward looking statements contained herein are subject to certain risks and uncertainties that would cause.
Actual results to differ materially from those projected in the forward looking statements.
You are cautioned not to place undue reliance on these forward looking statements, which reflect management's analysis only as of the date hereof.
We undertake no obligation to publicly revise or update these statements to reflect events or circumstances that arise after the date.
[noise] continuing results of operations.
And it's no secret that.
We had [noise].
Some difficulties to deal with in the last three to six months.
That's sales decreased 19% for the quarter.
[noise] without sales from the recent acquisition of ICEE distributors in October 29th Street.
[noise] ABA has an Alabama I see February 2020 sales decreased 20% for the quarter.
We had operating income of 3.9 million in the quarter compared to operating income.
31.1 million a year ago.
This was a significant improvement from our third quarter in which sales were down 34% from a year ago, which we had an operating loss of $19.4 million compared with operating income.
$39 million a year.
Okay.
[noise] foodservice.
Ill.
<unk> cost decreased 21% for the quarter.
16% for the year.
Again, our sales decline was significantly less important for the third quarter when sales were down 40% compared to a year ago [noise].
Our sales decreases for this quarter and for the third quarter were soft pretzels down 38%.
And 62% in the third quarter frozen juice bars, and I see ices sales down 25%.
First is 37%.
Sure it was down 48% versus 61%.
Okay down 44% versus 57%.
Handheld sales were up.
Hundred 21% versus being down, 13% and bakery sales were down 14%.
23%.
The increase in handheld sales was from a new water, we began to sell to.
Warehouse club stores in August.
We had an operating loss of $1.3 million in quarter, four compared to $18.2 million operating loss in the third quarter compared to operating income of $18.6 million a year ago.
I'm really because of lower production.
And sales volume due to the effect of Cove is 19.
This year's quarter included approximately $1 million cost for employee safety.
Increased over 19 compensation.
Compared to $5 million in the third quarter.
Additionally, as we said previously we closed a manufacturing facility in the mid west during the quarter and recorded an impairment charge of $5.1 million in the third quarter and an additional $1.3 million in the fourth quarter.
We expect to reduce manufacturing overhead and distribution costs by about seven or.
$8 million annually.
As a result.
The planned closure.
Retail supermarkets grocery.
We continue to have strong growth in retail supermarkets sales of products to retail supermarkets were up 41% for the quarter and up 23%.
For the year about the same increase in the fourth quarter as in the third quarter.
As sales to increase to supermarkets generally since mid watch [noise].
2020.
Due to COVID-19.
Well retinal sales were up 79% for this quarter, that's in retail grocery versus 74% for the third quarter.
Sales of frozen juice bars, and Italian ices were up 37% versus 26%.
Handheld sales were up 13.
13% versus 6%.
That's good sales were up 12% versus 56% third quarter.
We have introduced new products and programs intending to hold all that is growth and even to continue further growth.
Operating income in our retail supermarket segment increased in the quarter to 8.7 $8.7 million up $7.9 million in the third quarter and up from $1.4 million last year.
Due to the much higher sales.
[noise] ICEE and frozen beverages.
[noise] Arctic blast slush puppie.
And related sales.
Total frozen beverage segment sales were down 40% in the quarter.
26% for the year with a fourth quarter sales improved from being down 56% from a year ago on a third quarter.
Beverage sales were down 54% in the quarter, an improvement from being down 71% in the third quarter.
Without the sales of IC distributors, and the Solomon Babbo I see beverage sales were down 62% versus being down 78% in the third quarter.
Service revenue for others was down just 4% in the quarter versus being down 23% in the third quarter as we have been able to pick up new business over the past several months.
Machine revenue was 7.6 was $6.7 million down from $11.9 million last year as last year had two large expenses installation projects.
We had an operating loss in our frozen beverage segment of $3.5 billion in our fourth quarter.
Much improved from the operating loss of $9.1 million in our third quarter, but down from operating income.
Of $11 million in last years fourth quarter.
Consolidated.
Gross profit as a percentage of sales was 21% in the fourth quarter up from 17% in the third quarter, but down from 30% on last year's quarter.
Gross profit percentage decreased from last year, primarily because of lower volumes in our foodservice.
And frozen beverage segments higher costs relating to production disruptions disruptions due to volume and mix changes.
Expenses related to employee safety and increased COVID-19 compensation and additional reserves of approximately $2.4 million.
Inventories losses.
Due to certain products not selling products sold to schools for example.
Total operating expenses decreased $11.9 million this quarter.
A $13.2 million decrease not including the planned shutdown it.
And impairment charges.
Operating expenses as a percentage of sales was.
19.8% in both this year's quarter and last year's quarter.
A significant achievement, considering a sharply lower sales.
Our EBITDA for the past 12 months was $75 million.
Capital spending and cash flow.
Our cash and investment securities balance up to 178 million.
$8 million from our June balance.
As our balance sheet remains a concern.
Menus remain strong and we have no liquidity issues join this COVID-19 period.
68 million of our investments or in corporate bonds with a purchase price yield to maturity of 2.8% of which $58 million and sure within the next year.
Our bank preferred stock in mutual funds, which is $14 million have stabilized in value since the drop in value at the end of March.
We continue to look for.
Acquisitions, that's suitable acquisitions as a use of our cash.
Our capital spending was $10 million in the quarter and $58 million for the year up slightly from last year as we continue to invest in plant.
Improvements in efficiency and efficiencies and growing our business out of it at that.
Looking at further manufacturing projects to improve efficiencies on an ongoing basis [noise].
A cash dividend of 57, and a half cents a share was declared by our board of directors and paid on October 13th.
A couple of weeks ago.
<unk> and 2020.
We did not buy back any of our stock during the quarter.
Our investment income in the quarter decreased from $2.0 million last year.
$1.7 million this year, primarily as a function of lower interest rates and lower invested funds.
Our net earnings for the quarter and the year benefited by a reduction of income tax expense of approximately $2 million related to state deferred income taxes.
We expect to have an effective tax rate of 25%.
And 2021.
Regarding where we are now although our sales have steadily improved.
Compared to a year ago over the past six months or so we cannot estimate whether our sales will continue to improve or even remain at present levels in comparison to last year.
Sintering, the uncertainty surrounding COVID-19, and continuing impact on the economy.
On our customers.
As we have previously noted that said approximately two thirds of our sales and that's 67%.
Our two venues and locations that have either been shut down sharply curtailed their foodservice operations.
So we anticipate overtime team will continue to have a negative impact on our business.
As we have $278 million of cash and marketable securities on our balance sheet, we do not expect to have any liquidity fish.
[noise], we have operated our businesses during this quarter, both with short term consideration of the long term as well.
Please we have placed a high priority on continuing to keep our employees safe, while looking for ways to improve our business going forward, including reviews of our manufacturing and distribution network.
We close a manufacturing facility in the Midwest.
We have worked with our customers developing significant new products to sell as they continued to open up.
We continue to be optimistic about our future during these tough times.
Thank you for your continued interest in <unk>.
We will now turn over the call to Dan faster.
Who was recently named President would change <unk> for those of you who may not be aware of Dan Dan has been running our IC operations.
First as a vice president of sales for IC and as president of sales for IC and he has a long term employee.
[noise] Oh, Dan.
Thank you Gerry.
[noise], we will now turn it over to any questions Michelle.
Thank you so much Sir we will now begin the question answer session. If you have a question. Please press Star then one on your Touchtone phone.
If you wish to be removed from the queue. You May press the pound sign where the hash key there also maybe had to wait before the first question is announced if you're using your speaker phone you may need to pick up on your handset first before pressing the numbers once again to ask a question. Please press star one on your phone at this time.
Hi.
The first question the Q comes from Jon Andersen. Your line is open. Please proceed.
Good morning, everybody.
Hey, John how are Ya.
Hi, Hi, Dan Hi, Jerry How's everybody doing everybody's doing fine. Thank you.
Very good to hear safe couldn't safe and sound I hope.
I guess I wanted to start maybe I'll ask you about.
One of the trends you're seeing.
In the business, particularly foodservice.
And frozen frozen beverages, the the recovery this quarter I guess you call. It some recovery significant recovery in it.
In the.
The sales trends from Q3 work, where the business in aggregate was down I.
I think you said.
34%.
To the current quarter, where sales were down nine.
18%.
[noise], what how are you thinking about you know the progression as we go forward from here into 20 fiscal 2021 can we expect have we hit kind of a plateau.
In terms of recovery or narrowing you know the sales gap.
Relative to historical trend or can we continue to see sequential improvement.
As we move forward from here could you just talk a little bit about that some of the puts and takes and how you're thinking about it well.
Well this is Jerry John we believe that we have it.
The bottom and now we are bouncing back and notwithstanding any kind of a shock.
Impact from COVID-19, we expect to balance perhaps even all the way back in the next couple of quarters.
Yeah. So good question John you know, we have seen a progression in sales adds as you saw in our release.
And continue to see that both on the food service and the IC side. Those are the areas that were impacted the most.
During this current period of time.
And we're seeing that progress back, but slowly you know some of the places that we do business with and both of those two categories.
We'll open up but we'll continue to open up in a slow fashion such like the theaters.
Ballparks, those tied to Newsmen park type locations, but we are seeing them continue to grow we do believe that we have hit the bottom as Jerry said and feel like we'll continue to see that come back over this quarter and then hopefully a strongly in the third and fourth quarter of our coming here.
Okay, all right and then but this is Dennis I mean, you know this is Dennis obviously a lot of this is in our known and depends on what opens up I mean, it Dan Dan Your head.
Locations are opening up such a movie theaters schools to some extent, but.
Yeah. So.
Oh process.
And Dan you know and and now with the.
Significant increase in cases that we're seeing across the country.
Yeah, where where we're hopeful for sure that God.
Get back to me with work you know.
Third and fourth quarter of next year, but certainly.
It is I know I know and I think everyone understands that it's an unknown.
Right. So so using that kind of thought process you don't even go into it a constructive scenario.
Where you get back to maybe historical run rate level in the second half of fiscal 2021.
We're really talking about fiscal 2022 on a full year basis, maybe getting back to where you were prior to kind of a co but.
Situation. So I mean this is this is going to be a process and it is it's going to.
Is that a fair statement that we're going to we're looking at a at least probably a.
A couple of years here before you get back to kind of pre co. Good.
Like run rate levels, which would make a lot of sense given the current situation.
John certainly I didn't notice that you know are there.
There's a lot of uncertainty out there and so you don't know that for sure, but that would be our expectations as well.
By the time that we get the 2022, a that business would be back to its normal basis of what you've seen prior our pre kobin period of time.
Now in addition, having said having said that we also are hopeful and we have already picked up some business that we.
We did not have pre Kobe so we.
Yes that should help us to get closer.
Even prior to you know everything quote back to normal.
Let's let's talk about that so thats a great transition. So can you talk a little bit more whoever is most appropriate to talk about it some of the the new business that you are picking up obviously there is a lot happening in other retail supermarket channel and then it sounds like there is some other discrete business wins help us understand that a little bit like you just answered that force John.
[laughter].
You know when we know there's a lot more to it than that Gerry yes.
[laughter] why we slowed down in foodservice really across the board or when you think about it we lost all of spring training baseball, which is not.
It's not as significant I mean, everybody in Florida, Arizona would go to the games more nominal fee and in some cases for free and they would buy from the Concessionaires and we always have one two or even in some cases three products in the concession area.
So those sales were wiped off the books.
And going back even a big a bit further we had the slowdown in the other sports and neared over 500 movie theaters that were closed. So these are all showing signs up creeping back not necessarily jumping back like Dan said at a year or so we expect to pick at B b back to.
Well our previous levels. In addition, our sales force.
And our marketing people werent challenged to develop new products and sales.
We're starting to see some of the fruits of that labor now, including a recent launch of a product that Oh, the cosco asked us to make for that and it's a chicken bake, which is being sold and several hundred of the cosco. So.
Sidebar cafes, when he outs on the outskirts of the stores and we have really high hopes for that that could be as much as.
Somewhere between 10, and $25 million netting to us and sales.
Okay. John as you mentioned, we've been really fortunate at the retail side of the business has continued to grow we saw nice increases in the quarter and expect that to continue.
For a while and as Jerry mentioned we.
We've been out there meeting with our strategic customers that we have and trying to grow the business and has had some really nice successes with that.
Great. That's helpful. One last one for me. So you closed the manufacturing plant in the Midwest during the quarter I just want to make sure I understand when did that close and it does that mean that the $7 million to $8 million of annual cost savings you referred to do they kick in.
Right now as of the close of that plant.
They will be good yeah. They yeah. They they they are somewhat too.
The very limited extent kicked in in the quarter that just finished in fourth quarter, but going forward.
They should be there starting October.
Okay, Okay, great and that's an annual number to 78 million.
Correct. It is.
Okay. Thanks, so much.
Congrats on the improvement and good luck going forward.
Thank you John.
Yes.
Thank you. The next question in the queue comes from Todd Brooks.
Mr. Brooks Your line is open. Please proceed.
Hey, good morning, everybody nice job.
Oh well.
With CL King and associates varied.
Very good. Thank you good morning, Todd good to hear Yep.
Damn good to hear you as well a few questions. This morning, one if we can.
Talk about kind of manufacturing efficiency, how that worked out over the quarter I know in Q3, there was some some chasing and producing product where you had to to meet the rising retail demand how does that smoothed out over the quarter or is there still inefficiency based on where you are producing versus where you are.
Selling and and opportunities for that to improve in fiscal 21.
We're pretty much on target.
You know, it's a continual improvement for us Dod it's something that we're looking at each and every day, we have had a change in mix of products that we sell and so it's put some stress on some of our plants and a and we found ways to relieve that stress than some of the other plants. It but it's something that we monitor on a daily basis.
Yes.
Okay, Great and then.
Covert total corporate costs in the quarter were.
$1 million or that was just the cost for for safety related corporate expenses.
Yes that was for safety related.
Well there are other corporate costs outside of that if were looking to evaluate the margins.
No there werent really that is correct me, if I'm wrong, but there werent really any other cobot related expenses in this quarter.
That's correct.
Okay great.
And then if you.
If you look to you talked about the one facility is a close at the end of the quarter and the savings from it.
As as you're getting more of a sense of the go forward mix of your.
Of your business retail versus versus foodservice thoughts on the current manufacturing footprint and further opportunities for consolidation I'm not footprints.
We're doing a lot of work on that you know as you know, we're starting a new year right now and have just gone through the budgeting process and evaluation of our different plants and what we're producing out of each one and trying to gain as many efficiencies as we possibly can.
Today, there aren't any plans for any other consolidation we felt like we probably got the right number for what we need today or there might be some rotation of different products in different plants, but we feel pretty comfortable with where we're at right now.
Okay, Great and then just a final one for me in looking at.
The marketing expenditure in the quarter down.
It looks like a little over $10 million year over year down sequentially is this a.
The reality in the <unk> the environment as you're able to sell as much as capacity constraints are allowing you to sell now so that you're not having to invest in marketing in the same way and thoughts for spending on marketing as we roll into fiscal 21. Thanks.
Dennis you want to touch on that yeah, yeah, well I don't know if you've noticed it but we did change the caption on our on our income statement to say marketing and selling expenses.
Because it is it's been a little confusing we use just a marketing and it's really a combination both so.
You know and what we what but people is traditionally think of as marketing advertising.
Things like that.
Relatively small portion of that number as a big part of it is selling expenses such as our sales people sales commissions tied to.
Demos.
Yeah.
Things like that so so yes, we have.
We have reached a point where.
Yes in terms of the selling function.
That has come down.
Considerably to work, where it was and and some marketing as well and that yeah, we wouldn't expect it to improve from this level.
I think thats what your question was.
Yeah. So this is just kind of run rates the right rate to annualize for fiscal 21.
Yes in that area, yes.
Well I said, but again it that that number will will be.
I'm like a function of sales as well since there are expenses in there like broker commissions for example that are tied to sales levels.
Okay.
Okay great.
Thanks, Dennis Good luck. If this really is your retirement conference call here.
Thank you I appreciate it.
Thank you Todd.
And Sir we do have it looks like a pretty more questions in the queue. The next one comes from Ryan Bell. Your line is open. Please proceed.
Hi, everyone.
Good morning, Ryan.
Hi, so the retail business continues to say pretty elevated scanner data would you feel to offer any perspective out the growth there in general and maybe any potential to get incremental products on shelves.
And then and then any commentary on supermarket inventories right now and if there are any gaps between shipments and so I.
Sure. Thank you for the question Ryan our retail and does contain does continue to grow and we're really proud of what it's done and we think we have some really good things in the hopper as well Bob Pape, Our senior Vice President of sales for that Division is here today and I'll, let him go ahead and answer some of those questions, yes, and so.
So as we see the retail business is really three things that are driving there. One is the continued strong performance of at home consumption because of COVID-19.
Additionally, we did grow our distribution base with some new products across both the snack as well as novelty categories and thirdly, we receive some strong support from some of our key customers who were in a in a position to promote.
During the fourth quarter and are looking to continue to do the same as we enter our new fiscal year.
Bob you want to touch on some of the new products as well.
Products really are these are super Super frozen brand or soft pretzel bites. The Indians brand for principal products continue to perform and we've also added because of the.
Ability for us to now add the ICEE brand to a national distribution model, we're able to gain some distribution there as well with several key retailers.
Okay. That's helpful. So I mean.
Seems like you're able to lean a little bit harder into the retail space right now.
We think we are.
And and we anticipate that being strong for the next quarter as well and so you know we are feeling good about that side of our business as it continues to grow I think we have some really neat new products that will continue to gain some momentum.
Okay. Thanks, Thanks for the context, there and I know you touched on this a bit earlier, but you are talking about some of the inter quarter improved since for food service and I see that I mean are there any government policies.
Or policies that the particular venues are taking that may be able to speed up any of the recovery in that part of the business. I know you know if you've got a restaurant they sort of barriers at tables are there any ways that that can be I guess tweets.
Tweaked to see a greater level of improvement.
Well, that's certainly is some of the issues in that and that sector of our business is there are some governmental restrictions.
In the theaters and in the restaurants across the country as we see them start to lighten up I think we'll see our sales continue to grow I'm not sure that we can have much of an impact on the government as as they make those decisions, but but we are hopeful that they'll continue to.
To open up from what we've seen today and and we'll see that business start to slow that come back as we've talked about.
Okay, Thank you and hi.
With the with respect to cost management policies that have already been instituted.
Are there any other key town seek side I know you close the plan and you provided some of that information are.
Are there any other incremental cost control measures that could be taken to shield from the negative impacts from the fixed cost de leveraging over the next few months.
Again, that's something that we're taking a really hard look at I. I kinda likened it to analogy, we know we're picking up rocks and looking up underneath them and seeing where we potentially could gain.
Gain some efficiencies and I would say, we're looking at all angles of our business to be able to do that one of the areas that we're focused on right now is distribution and we think there is some potential savings on that side of it and we're we're actively looking and seeing what we can do to do that.
Okay, and and how does the M&A landscape look right now relative to the pre told the environment has it changed anything about your thinking with respect to strategies as we get into calendar 2021 and beyond.
This is Jerry let me comment on that rather quickly we continue to smoke.
At possible acquisitions.
Since we have accumulated.
All the cash that we have and our process is still very stringent.
The fed has to be right.
The quality of the products, whether they be new products or something to support our current product line has to fit.
We've made acquisitions in the past we continue to look for acquisitions.
As a good use of our cash and chances are we will make acquisitions in the future, but there's nothing that is.
That is in line now for the immediate future.
Okay. Thanks for all the detailed answer so I'll pass it on to someone else.
Thank you Ryan.
And the next question comes from Chris Stein. Your line is open. Please proceed.
Oh, good morning, one of the more striking things that I've noticed as it relates to your end markets is the.
Great inconsistency as it relates to the protocols around self service drink stations and convenience stores or similar venues and I was wondering if you could kind of give us an idea of what percentage of your.
Doors in the IC business are actually seeing replenishment right now.
Chris I want to just make sure I understand your question are you asking the percentage of our business that is self service compared to customer our crew served.
That would be helpful. But then within the convenience store channel.
I mean that literally as I've traveled the country.
Going to blocks, one guy could be fully opened with no restrictions and then the next guy.
How's everything shut down so I was just trying to get a feel for.
The increases that we've seen in that business is it how much of it is related to companys reopening those stations versus where we're actually seeing replenishment of people that have already been open.
Right.
Yeah. So the IC business certainly has been affected with shutdowns.
I don't know that it was oh or has been specifically.
Okay, just on where its self serve and where it's not self serve that's been an issue for us from a from the time. The cobot started and we came up with a lot of different ways that the customer can use the product.
In a self serve environment, but that really hasn't been the surprise.
Surprisingly I guess, you could say it hasn't really been the focus of our customers typically it's a whether they just decided to open up that area or not we have convenient stores across the country. Like you said that had been open now for two or three months in a self serve environment.
And we have some locations even today that are talking about moving the equipment to a self serve environment. So it's a it's a little bit all over the place with that but that has not hampered it to date.
Okay and then.
The success that you guys have had at retails than.
Pretty impressive, especially given that I'm sure everybody's trying to get entry into that channel and so I was just wondering if the success. There is a kind of more a function that you guys just really didnt target that area too heavily in the past.
Or.
Was there some kind of Oh actually is some strong demand that you guys.
Witnessed when you started addressing that channel.
Actually it's I guess, it's just surprising that you've been so successful there so fast.
The closure of the food service locations, whether they be at a major mass merchandiser elsewhere as kind of like a creeping when the people into the supermarket.
The supermarket growth, which has been.
Significant this quarter, we hope it will continue and it's caused they.
Our dialogue with the management and the supermarket and we're looking to put additional product said.
Keep in mind most of the products that we're making oh.
We have a unique walking share and in some cases, it's in the 70% to 80% market share with some of our new products.
Yeah.
It's going to be.
In that area in addition.
In addition to that Chris you know we have a we have a great sales force out there who have been in constant contact with our customers with our strategic customers on our large customers across the country and had been able to gain market share during this time.
Great keep it up guys.
Bob if.
I could add one other thing.
I think it's also credit to our manufacturing operations people.
The supply chain open kept running our plants and our customers rely dominos and that has paid off.
Now.
So I need to give some credit to the folks that are in.
Our manufacturing facilities its grade point Bob.
Thanks for the color.
Thank you Chris.
And the next question the Q comes from Chris Carlson. Your line is open. Please proceed.
Thanks for taking my question I wanted to return to the sales and marketing expense, which had averaged about 24 million a quarter, but before the pandemic. It was only 16 million. This past quarter. So I think you'd said that that 16 million is is more the is the better starting point, but and will grow.
So my sales, but but can you be more specific on how you were able to reduce sales and marketing cost so much.
Dennis you want to touch on that.
Well the biggest drop.
Yeah, obviously had to do with it.
In sandals.
And some of the expenses that we might have had in the past.
Has not come back yet such is doing demos at.
Warehouse club stores, which have been eliminated since the beginning of the plan.
Pandemic.
We've also been able to.
Reduce obviously on.
Some of the fixed costs that are in there.
And but that you know the number I guess number to look at is that the number six and a half a percent of sales.
In.
The quarter.
Compared to I think is roughly running Iran that little over 8%.
Last year for the full year as a percent of SASSA. So I think probably six and a half is probably a little bit low and we'll probably came back into the 7.5% to 8% range going forward.
Okay. That's helpful. I appreciate the color and.
Thank you.
Thank you, Chris you love them.
All right and the last question in the queue comes from John Anderson. Your line is open.
Hello, again, thanks for taking the follow up.
I just wanted to ask about this schools part of your food service business.
Too so.
Last year like school.
Schools were open in the <unk>.
Obviously in the fall that changed I think to some extent in the spring, but how much could that or should we be thinking about that weighing on.
On the business.
As we as we move into the fiscal.
Fiscal first quarter and or maybe the first half of fiscal 2021.
Well those sales are roughly.
$75 million on an annual basis or work.
Yes, pre code mid $70 million to $80 million.
And right now, they're running still less than half.
And I think maybe closer to one third of what they had been running a.
A year ago at this time.
[noise], Okay. Thank you very much.
Well thank you John.
And that was the last question the queue gentlemen.
Great well. Thank you very much Michelle Thank you for everybody listening in today, we appreciate your being a part of JNJ snack foods and we appreciate you being on the call, but I and look forward to speaking with you in a quarter from now.
Thank you ladies and gentlemen. This concludes today's teleconference. Thank you for participating you may now disconnect.
Thank you Michelle.
[noise] [noise].